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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Arkansas is a genuine bargain: 1 of the 1 cities in this ranking come in below the national cost-of-living average. Little Rock leads at an index of 68 with rent at just $1,171/month — 38% less than the $1,895 national median. Here are the numbers, sourced from federal data updated in 2026.
Arkansas is a genuine bargain: 1 of the 1 cities in this ranking come in below the national cost-of-living average. Little Rock leads at an index of 68 with rent at just $1,171/month — 38% less than the $1,895 national median. Here are the numbers, sourced from federal data updated in 2026.
A closer look at Little Rock: the cost index of 68 breaks down to a Housing index of 68 (strongest category) and a Healthcare index of 94 (weakest). Median rent is $1,171/month — 38% below the national median — while household income sits at $60,583, meaning locals spend about 23% of income on rent. That's a healthy margin by any standard.
And there's one more thing: Across Arkansas, the average cost of living index is 68 — 43 points below the national median. Known for one of the nation's most affordable states, the state offers 1 tracked cities with median rents averaging $1,171/month. That's $724 less than the national average of $1,895. Year over year, that savings rate is portfolio-grade (that's pre-tax, of course).
Bottom line: Little Rock leads this ranking for clear, data-backed reasons — but the "best" city depends on your priorities. Click into any city below to see the full detail page with 12-month trend charts, profession-specific salary data, and a breakdown of all five cost categories. If you're seriously considering a move, use our salary calculator to model your specific income against these numbers.
#1 Ranked: Little Rock — cost index 68, rent $1,171/mo, income $60,583
1 of 1 cities come in below the national cost-of-living average of 111
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
| Rank | City | Value Ratio | Cost Index | Median Rent | |
|---|---|---|---|---|---|
| 1 | Little Rock | 891 | 68 | $1,171 | Details |
203,842 residents · Arkansas
A closer look at Little Rock: the cost index of 68 breaks down to a Housing index of 68 (strongest category) and a Healthcare index of 94 (weakest). Median rent is $1,171/month — 38% below the national median — while household income sits at $60,583, meaning locals spend about 23% of income on rent. That's a healthy margin by any standard.
Value ratio = median household income ÷ cost of living index. A higher ratio means each dollar of income buys more locally. This captures purchasing power better than looking at income or cost alone. All data is sourced from federal agencies and verified research institutions. Cost of living indices are normalized to 100 (national median) using Zillow rent as the primary signal, with sub-category adjustments derived from regional BLS price data. Rankings are updated monthly as new data is released.
Little Rock ranks #1 in Arkansas for this analysis with a cost index of 68 and median income of $60,583.
Our cost of living index uses real Zillow rent data as the foundation, indexed to 100 (national median). Sub-categories (housing, food, transport, utilities, healthcare) are derived from the overall index with regional adjustments. Data is updated monthly.
City data is refreshed monthly from Census Bureau population estimates, Zillow rent and home price indices, BLS salary data, and Tax Foundation tax rates. Last updated: 2026.
The median 1-bedroom rent in Little Rock is $1,171/month as of 2026, based on Zillow's Observed Rent Index. This is $724 below the national median of $1,895/month.
The median home price in Little Rock is $214,773, which is 3.5× the local median income. It's on the edge of affordability for median-income households. The national median home price is $467,370.
Arkansas has a 3.9% state income tax rate. Combined state and local sales tax averages 9.47%, and the effective property tax rate is 0.57%.
This ranking was generated using data current as of early 2026. Population and income data comes from the Census Bureau's American Community Survey (5-year estimates). Rent and home price data is from Zillow's monthly releases. Tax rates are from the Tax Foundation's 2025 edition. Rankings are refreshed monthly.